GameFi monthly new users down by 50% despite gaming tokens’ recovery

LAGOS (CoinChapter.com) — The GameFi market has witnessed a significant decline in the last 30 days as the number of new users in the sector plummeted by more than 50% since May 2022.

Data from Footprint Analytics, a visual data analytics platform, disclosed that the number of new users in the GameFi sector dropped to around 830,000 in June from more than 1.7 million in May.

The analytics platform also indicated that GameFi financing funds fell by more than 90% in the last 30 days. Additionally, it revealed that funding for the second dropped from a peak of $2.4 billion to $165 million. Notably, this is the biggest drop since 2021.

Additionally, the blockchain gaming sector also recorded more decline, which was reportedly triggered by the massive cryptocurrency market price drop. As a result, the total number of active users in the sector also dropped by more than 13%.

Data from Footprint revealed that the total number of active Gamefi users fell from over 22.8 million in May to around 19 million this month. The drop has been linked to the decline in users of some gaming projects on the Binance Smart Chain.

Furthermore, the GameFi industry also recorded a 93% decrease in total investments in the last 30 days. The GameFi sector, which accounted for 11.5% of the total investment in the blockchain industry, dropped to 164.5 million in May.

The analytics platform indicated that Ethereum’s high gas fee was the catalyst for the decline recorded across the gaming sector. Moreover, it pointed out that the drop in users among several gaming projects also triggered the drop.

“Ethereum’s high gas fees and network congestion issues persist, which are major factors in its failure to grow the number of projects rapidly. BSC also saw some problems after well-known game projects like StarSharks and Cryptomines failed to retain users.”

Footprint said.

GameFi Monthly Volume Surge By 355%                                           

Meanwhile, despite the significant loss which swept across the GameFi sector, the overall monthly volume rallied by more than 350%.

In addition to the increase in monthly volume, the number of projects on the GameFi chain also rose by 2.5%. As a result, the sectors in the last 30 recorded the addition of 39 new projects to the gaming chain community.

Increasingly, Polygon is the blockchain with the most growth in the number of projects this month. Polygon registered over 50% of the new projects, with BSC, Hive, and Harmony coming in with 15%, 11%, and 10%, respectively.

AXS, SAND, ENJ Rally

Despite the major decline experienced across the GameFi sector, tokens of the leading gaming projects recovered on the day as most recorded double-digit growth.

According to data from Coingecko, the market cap of gaming tokens surged by around 10% and currently stands at $6 billion. Notably, Stepn (GMT) led the race of gains on the day, followed by Axie Infinity (AXS) and Sandbox (SAND), among others.

Stepn (GMT) governance token surged by more than 20% on the day to trade at $0.775236. The token market cap also rose to around $465 million, and its 24-hour trading volume increased by over $610 million. Also, the governance token currently has a circulating supply of 600 million GMT coins and a total supply of 6 billion.

Axie Infinity (AXS) token has soared by about 10% in the past 24 hours to trade at $14.5. The token, more than 90% down from its all-time high, has a market cap of $1.2 billion. Nonetheless, AXS is still down month-to-date by over 30%.

Furthermore, Sandbox (SAND), Enjin (ENJ), and Gala (GALA) also rallied significantly on the day. Notably, SAND registered a 6% growth while ENJ and GALA rose by 9% and 5%, respectively.

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